Wage compensation for job-related illness: Evidence from a matched employer and employee survey in the UK
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- Wei, X. J Risk Uncertainty (2007) 34: 85. doi:10.1007/s11166-006-9000-7
Despite voluminous studies on compensating wage differentials for job-related fatal or non-fatal injuries, there remain few published studies confirming the existence of compensating wage differentials for job-related illness. This study utilizes a recently completed UK employer-employee survey to look at this specific issue. I find there is strong evidence of wage compensation for job-related illness risk for both male and female employees in the UK. The estimated wage compensation for one job-related illness episode per year ranges from 27% to 140% of annual earnings depending on gender and estimation approaches.